New York State Assembly

 
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A08484 Summary:

A08484 Actions:

A08484 Committee Votes:

Committee:INSURANCE   Chair:Cahill      
DATE:05/30/2018AYE/NAY:22/0  Action: Favorable         
Cahill
Aye
Barclay
Aye
Cook
Excused
Butler
Aye
Pretlow
Aye
Hawley
Aye
Rivera
Aye
Blankenbush
Aye
Cymbrowitz
Aye
Curran
Aye
Lavine
Aye
Walter
Aye
Hevesi
Aye
Garbarino
Aye
Skoufis
Excused
Steck
Aye
Crespo
Aye
Joyner
Absent
Dilan
Aye
Hunter
Aye
Simotas
Aye
Walker
Aye
Niou
Aye
Rosenthal
Aye
Stern
Aye

A08484 Floor Votes:

A08484 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A8484A
 
SPONSOR: Cahill

 
TITLE OF BILL:
 
An act to amend the insurance law, in relation to business entity
license renewal dates
 
 
PURPOSE:
 
The purpose of this bill is to combine the three separate insurance
producer business entity license expiration dates into one common date.
 
 
SUMMARY OF PROVISIONS:
 
Section 1 amends the Insurance Law by amending paragraph 2 of subsection
(j) of section 2103 to change the expiration date for licenses issued
under subsection (b) to June thirtieth of odd numbered years.

Section 2 amends the Insurance Law by amending paragraph 1 of subsection
(j) of section 2014 to change the expiration date of the licenses issued
under subsection (g) to June thirtieth of odd numbered years.
 
Section 3 establishes an effective date of July I, 2017, and would apply
to licenses issued and renewed after that date.
 
 
JUSTIFICATION:
 
Under current Insurance Law insurance producers licensed as business
entities typically have three different dates on which they must renew
their business license.
 
This situation arises because the Insurance Law provides for business
entity renewal dates based upon the type of license. Business entities
licensed as an agent to write life insurance have a two-year license
term that expires on June 30 of odd numbered years. Business entities
licensed as agents to write property/casualty lines have two-year
license term that expires on June 30 of even numbered years.  Business
entities licensed as insurance brokers for both property/casualty lines
and life lines have a two-year term that expires on October 31 of even
numbered years.
 
Most business entities that sell insurance are licensed for all lines of
insurance and are licensed as both agents and brokers. Therefore, the
businesses must adhere to the three different licensing terms.
 
There is no specific rationale for having three different dates, and
having one date would make business entity licensing and renewal much
simpler for businesses.
 
This bill would establish June 30 of odd-numbered years as the one
common expiration date for all business entity licenses.
 
 
LEGISLATIVE HISTORY:
 
2017-2018: A8484 - Amended on May 21, 2018
 
 
EFFECTIVE DATE:
This act shall take effect July 1, 2017, and shall apply to licenses
issued or renewed on or after that date

A08484 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8484--A
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 16, 2017
                                       ___________
 
        Introduced by M. of A. CAHILL, HUNTER, CURRAN, D. ROSENTHAL -- read once
          and  referred  to  the  Committee  on  Insurance -- recommitted to the
          Committee on Insurance in accordance with Assembly Rule 3, sec.  2  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        AN ACT to amend the  insurance  law,  in  relation  to  business  entity
          license renewal dates
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 2 of subsection (j) of section 2103 of the insur-
     2  ance law, as amended by section 2 of part F of chapter 59 of the laws of
     3  2005, is amended to read as follows:
     4    (2) Every license issued to a business entity pursuant  to  subsection
     5  (a)  of  this  section  shall  expire  on June thirtieth of odd numbered
     6  years.  Every license issued to a business entity pursuant to subsection
     7  (b) of this section  shall  expire  on  June  thirtieth  of  [even]  odd
     8  numbered  years.  On  and after January first, two thousand seven, every
     9  license issued pursuant to this section  to  an  individual,  and  every
    10  license  in  effect  prior to January first, two thousand seven that was
    11  issued pursuant to this section to an individual, who was born in an odd
    12  numbered year, shall expire on the individual's  birthday  in  each  odd
    13  numbered  year.  On  and  after January first, two thousand seven, every
    14  license issued pursuant to this section  to  an  individual,  and  every
    15  license  in  effect  prior to January first, two thousand seven that was
    16  issued pursuant to this section to an individual, who  was  born  in  an
    17  even  numbered  year,  shall expire on the individual's birthday in each
    18  even numbered year.  Every such license may be renewed for  the  ensuing
    19  period  of  twenty-four  months  upon  the  filing  of an application in
    20  conformity with this subsection. The superintendent may issue such rules
    21  and regulations as the superintendent deems necessary to  implement  the
    22  terms of this subsection.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11823-05-8
        A. 8484--A                          2
 
     1    §  2.  Paragraph  1 of subsection (g) of section 2104 of the insurance
     2  law, as amended by chapter 442 of the laws of 2012, is amended  to  read
     3  as follows:
     4    (1)  Every  insurance broker's license issued pursuant to this section
     5  to a business entity shall be for a term expiring on the  [thirty-first]
     6  thirtieth  day  of [October] June of [even-numbered] odd-numbered years.
     7  On and after January first, two thousand  seven,  every  license  issued
     8  pursuant  to  this section to an individual, and every license in effect
     9  prior to January first, two thousand seven that was issued  pursuant  to
    10  this  section  to  an  individual, who was born in an odd numbered year,
    11  shall expire on the individual's birthday in each odd numbered year.  On
    12  and after January first, two thousand seven, every license issued pursu-
    13  ant  to this section to an individual, and every license in effect prior
    14  to January first, two thousand seven that was issued  pursuant  to  this
    15  section  to  an individual, who was born in an even numbered year, shall
    16  expire on the individual's birthday in each even  numbered  year.  Every
    17  such license may be renewed for the ensuing period of twenty-four months
    18  upon  the  filing  of an application in conformity with this section. In
    19  the case of a license issued to a new applicant, the superintendent  may
    20  issue  a  license  for  a term of more than two years, provided however,
    21  such term shall not exceed thirty months. The superintendent  may  issue
    22  such  rules  and  regulations  as  the superintendent deems necessary to
    23  implement the terms of this subsection.
    24    § 3. This act shall take effect on July 1, 2019; effective  immediate-
    25  ly,  the superintendent of financial services shall promulgate any rules
    26  and regulations necessary for the  implementation  of  this  act  on  or
    27  before such effective date.